Saturday, October 4, 2008

Unethical Governance.

Edmund Burke Stated ‘All that is necessary for the triumph of evil is that good men do nothing’

To this effect, sadly Canada may elect a majority of conservatives for fear of tax changes.

Now let me state for the record to those few of you who may read this that I am well aware of the various scandals that have occurred in my lifetime on the hill, I am after all named after a senator. So the previous liberal cabinet had some issues with HRDC, it's no worse the Mulrouney's lobbying tactics and we should remember that his conservative government was fiscally irresponsible.

Let's pause for a moment and think about what drives this nation, it's not northern sovereignty, it's not catering to a plethora of minorities, it's not idiotic subsidies gained by union or natural resource development based lobbies. It's definitely not public health care or the public service commission these things all cost money. That's all just typical rent-seeking behavior from those with vested interests and a large enough income to change the advertising budget of the party that tows their interests.

It's the economy, by and large the wheel of business by which every dollar is made and any corporate dollar over and above 225,000 is taxed at a marginal rate of 38% to 43% depending on your province.

You don't need a degree in economics to know that the one thing any business needs is cash. Money buy's people, materials, time and space, it all costs something.

For me to hire anyone i know as a professional and to sell their services to anyone I have to take their salary and pay for them 25% more over and above their salary, it's called a loaded labor rate and it's what business pays to remain in business since without people you have nothing.

Now I am not a die-hard liberal, nor am I a die hard conservative, i prefer not to see the "left or right' paradigm as it's horribly flawed in it's analysis of good policy when it comes to government. I try to be pragmatic, i want as a citizen for my country to improve, for it's quality of life to become better for each and every individual, this means that their rights are protected; and they have the ability to become wealthy within their careers and that they may live knowing that their health is guaranteed and that they have an equal footing when it comes them and everyone else.

Let's fast forward to Harper's government; They introduced a number of bills that I disagree with; the Anti-Abortion bill dressed in an assault code (C-484), the bill clearly written by the American media lobby to attempt to restructure and criminalize anyone that would modify hardware or software that they own by law (C-61), a bill no one knows anything about that has been read in private (ACTRA) couple these three blatent blasphemes to democracy with Jim Flarity.

Jim Flarity is the current finance minister and he needs to resign, I'll state that it's a well known fact that he enacted a Trust tax after his conservative cabinet stated publicly that they would not touch Income trusts; his excuse for this tax was that there was "Tax Leakage" within the trusts.

Let's examine that last point for a moment, the previous Chretien cabinet created a vheclie for business that essentially had no marginal tax rate; this meant that large corporations would create holdings companies and then sell said holdings companies to trusts. What this did for the stock they held was improve investor confidence, so much so that pensions managers started investing in the pillars of the Canaidan free market economy; companies like BCE, Thomson, and any other major player on the TSX. This fostered foreign and domestic investment in Canadian owned corporations.

The whole notion of leakage is a falsehood and Jim knows it, he is just a greedy politician without a clue when it comes to finance or procurement. Harper thinks this man is the right man for the job, this is dead wrong as when he enacted the trust tax he devalued peoples retirement funds. In this country an RRSP is structured in such a way that it's a Tax deferral vehicle, not a tax evasion or aggressive tax planning one.

The moment that this tax came into effect we (our economy) was devalued, in less than three months the total market value of the various trusts decreased by around 30 billion.

So what Jim has done is take a little money now and lost a whole lot of money for a lot of people later, this crime has gone unnoticed, and it's a crime of fiscal irresponsibility, it has made certain that Canadian companies are now owned and operated by private equity or foreign interests.

Yet what does the average tax payer see, a 1% drop in the GST, combine that with the trust tax and you have a limited growth scenario that takes our economy and turns it on it's head. Realistically unless you are spending like mad that 1% isin't really going to fatten your wallet; and the trust tax well that took care of your retirement funds, to put it bluntly this man stole from our future. Even if you think for a moment that your CPP will cover your retirement with a 70% pension, how do you think your pension managers make that money for you when you retire; they invest in the economy, and pension managers in canada have very strict regulations when it comes to what they can and can not use as investment vehicles.

Combine this with the fact that neither the NDP, Green party or Conservatives have a plan; Jim is an old grit crony that gave his speech writer $125,000 without tendering his contract on Merx; in this country this is a crime, yet no charges have been laid and no one is accountable.

The liberals have a plan that has a surplus, yet i fear they will not have a majority, so our fuel taxes get increased! big freaking deal; stop driving your car every where and move walking distance to work and not only will you save money on insurance, fuel and other consumables, you'll get some exercise year round; time to think in the morning and under Dion's plan you'll even get a whopping tax break. This plan is income neutral, it shifts the burden of our tax base to the producers and retailers of gas based fuel. Personally I think it's a bit of genius, but where they got my vote is the removal of the trust tax, so when I decide to defer my retirement funds they are not hampered by poor and slowed growth because some grit decides with no evidence that there is "Trust Tax leakage" just so he can steal my money and give it to his friends.

It's called fiscal responsibility and all other points about our government; all other issues when compared with this prime are mute.

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